Changyuan Donggu, located in Xiangyang, Hubei, delivered a semi-annual transcript with a net profit of 154 million yuan and a year-on-year increase of 70.49% in just three months after listing, and the company used 278 million yuan in cash for dividends. To reward investors.
Both revenue and profit increase
278 million yuan for cash dividends
As a supplier of core components for commercial vehicle engines, Changyuan Donggu’s main business is the research and development, production and sales of diesel engine components. The main products include cylinder blocks, cylinder heads, connecting rods, etc., on May 26, 2020 Listed on the Shanghai Stock Exchange. After only three months of listing, Changyuan Donggu released a semi-annual report and also offered a large dividend plan.
On August 10, Changyuan Donggu announced its semi-annual report. In the first half of the year, Changyuan Donggu achieved operating income of 753 million yuan, an increase of 32.56% over the same period of the previous year. Due to the increase in gross profit margin and reasonable control of period expenses, it achieved The net profit attributable to shareholders of listed companies was 154 million yuan, an increase of 70.49% over the same period last year.
The company announced the 2020 semi-annual profit distribution plan on the same day, and the parent company’s profit for the semi-annual 2020 distribution to shareholders is 375 million yuan. In order to reflect reasonable demands and returns to investors, the company plans to distribute a cash dividend of RMB 12 (tax included) to all shareholders for every 10 shares, with a total dividend of RMB 278 million. A general meeting of shareholders will be held on August 25 to review the dividend plan.
"The company’s consolidated statement has an undistributed profit of nearly 600 million yuan at the end of 2019. The company did not distribute this part of the profit to the original shareholders before listing, and has accumulated a large dividend capacity. The company’s customers are all high-quality customers, and the flow of funds is very smooth. Therefore, the company comprehensively considered the development stage, operating performance, future investment plans and other factors to formulate this dividend plan, so that new and existing shareholders after the listing can share the dividends of corporate development." Liu Wangcheng, secretary of the board of directors of Changyuan Donggu Said in an interview with a reporter from the Securities Daily.
Commercial vehicle production and sales growth in the first half of the year
good for parts manufacturers
Liu Wangcheng introduced that in the first half of this year, Changyuan East Valley's operating income and net profit increased significantly, and accounts receivable and inventory increased. However, financial indicators such as accounts receivable turnover rate and inventory turnover rate are still relatively healthy. As of June 30, the company's accounts receivable was 537 million yuan, an increase of 32% from 407 million yuan at the end of the previous year, and it accounted for 14.17% of total assets, which was lower than the previous year before listing. Affected by the increase in the balance of accounts receivable due to the increase in sales volume, the provision for bad debts in the current period was 7,144,200 yuan, and the inventory was 189 million yuan, mainly due to the impact of inventory, which increased by 20% over the end of the previous year, which was lower than the growth rate of operating income.
“Affected by the industry’s prosperity, in the first half of the year since we resumed work, the demand from major customers has been relatively strong. Our sales in the first half of the year increased by more than 30% year-on-year, far exceeding the industry’s average growth level; another important factor leading to sales growth It is the contribution of new customers such as Guangxi Yuchai, Shanghai Philippine Red, and Sinotruk. In general, with the steady progress of new customers and new projects, the company's major customers in the first half of the year were scattered, and the top five customers accounted for the proportion of total revenue Decline, the company's customer structure is continuously optimized." Liu Wangcheng said.
Zhang Xiang, a senior researcher at the think tank of new energy and intelligent networked vehicles, said in an interview with a reporter from the Securities Daily that although the automobile market in the first half of 2020 was hit by the epidemic, it has been affected by various macroeconomic policies, infrastructure investment policies, and emission standards. Driven by major favorable factors such as switching, over-regulation, and high-speed per-axle charging, the production and sales of the commercial vehicle market in the first half of the year increased year-on-year, which is beneficial to upstream parts manufacturers. From an overall point of view, my country's commercial vehicle system is relatively mature. After the epidemic, the industry can smoothly return to the right track.
In fact, Changyuan Donggu’s major customers such as Foton Cummins, Dongfeng Cummins, and Dongfeng Commercial Vehicle have strong demand for the company’s orders; in addition, the company’s newly developed Guangxi Yuchai, Shanghai Philippine Red, China National Heavy Duty Truck and other new customers in Product demand plans are rapidly increasing. The company's sales in the first half of the year have increased significantly, and sales have reached a record high.
In addition, in terms of the progress of Changyuan Donggu’s IPO fundraising project, as of June 30, 2020, the company’s fund-raising balance should be 361 million yuan.
According to relevant sources, Changyuan Donggu Dongfeng Cummins plans to invest 150 million yuan in the new 13L cylinder block and cylinder head. At the end of June this year, 120 million yuan has been invested, and 82.04% has been completed. 44.76% was invested in the new projects of Changyuan Donggu Yuchai connecting rod and Cummins connecting rod. Changyuan Langhong Yuchai’s 6-cylinder block and cylinder head new construction project has now invested 62.35%. The first phase of the completed project has been mass-produced in January 2020, and the second phase is under construction.
Regarding the company’s future development, Liu Wangcheng said: “The company’s next step will be to stabilize and expand its core component manufacturing business in the field of diesel engines, so that the company’s market share can be rapidly and steadily increased, and its advantages in scale production will be further enhanced to build a leading position in the industry. New Energy We will also try. The company is also paying close attention to the development and application of new energy, looking for an entry point for new energy cooperation, so that traditional fuels and new energy can develop simultaneously, and dual-track operation."